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Idle timber drains STC coffers

by Tharika Goonathilake

Over Rs 400 m worth of teak has been lying idle in the State Timber Corporation (STC) timber stores as a result of inappropriate and short sighted changes made in the timber marketing policy, the new Chairman of STC Mrs Renuka Herath said.

According to the Chairman, this is among several other instances of mismanagement and misappropriation of STC's funds which has created colossal losses to the Corporation.

Mrs Herath, who was speaking to the STC staff after assuming office as the new Chairman said, the Corporation, had a net profit of Rs 238 million when the PA assumed office in 1994, but this had decreased to a dismal net loss of Rs 90 million by 2001.

"The introduction of forestry plant species to areas that are not appropriate for forest cultivation in the absence of necessary water and other vital climate conditions for proper plant growth was another good example of the wastages that had occurred during the PA's tenure," she pointed out.

There were also recruitment drives for mere political reasons resulting in an excess of 2,000 workers at the STC.

In addition over Rs 380 million had been utilised to purchase vehicles and other equipment which had not brought in any economic incentive.

These vehicles were also in need of constant repair. Maintenance costs alone were in the region of Rs 48 million annually, the Chairman pointed out.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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